Every UK limited company must file annual accounts with Companies House and a Corporation Tax return with HMRC. Missing deadlines results in automatic penalties, so understanding your obligations is essential even if you delegate the work to your accountant.
Key deadlines
Annual accounts must be filed with Companies House within nine months of your company's financial year end. Your Corporation Tax return must be filed with HMRC within 12 months of the year end, but Corporation Tax payment is due nine months and one day after the year end. If your financial year ends on 31 March, your accounts are due by 31 December and Corporation Tax payment by 1 January.
What goes into your accounts
Your accounts include a balance sheet showing your company's assets and liabilities, a profit and loss statement showing income and expenditure, and various notes and disclosures required by accounting standards. As a small company, you can file abbreviated accounts with Companies House, which contain less detail and keep your financial information more private.
Your accountant's role
Most contractor accountants handle the entire process: preparing the accounts, filing with Companies House, preparing and filing the Corporation Tax return, and calculating your tax liability. Your role is to keep accurate records of income and expenses throughout the year, provide bank statements and receipts when requested, and approve the final accounts before submission.
Penalties for late filing
Companies House penalties for late accounts filing start at £150 for being one day to one month late and increase to £1,500 for being more than six months late. HMRC penalties for late Corporation Tax returns are £100 initially, rising to £200 after three months, with additional daily penalties after six months. These penalties apply automatically and are not waived for ignorance or oversight.
Confirmation statement
In addition to annual accounts, every company must file a confirmation statement (formerly annual return) with Companies House at least once every 12 months. This confirms that the company's registered details are up to date. The fee is £13 for online filing. Your accountant may handle this for you, but confirm that it is included in their service.